China is confident of realizing its 6 percent annual growth target for industrial output in 2017 as the growth momentum of the industrial sector is improving, a top official from the Ministry of Industry and Information Technology said on Friday.
“The country’s industrial economy developed steadily and positively, while business performance and market confidence improved in 2016. That momentum is expected to continue this year,” said Industry and Information Technology Minister Miao Wei at a news conference on Friday.
China’s industrial output, a main gauge of industrial production, increased by 6 percent last year and quarterly growth had improved from 5.8 percent in the first quarter to 6.1 percent in the next three quarters, clearly indicating stable growth for the whole industry, ministry data showed.
Other indicators such as the producer price index and purchasing managers’ index have all improved. For example, the PPI, which gauges factory-gate prices, has been positive since September and surged 5.5 percent in December. The PMI, an indicator of manufacturing activities, has remained above 50 since March, indicating expansion.
High-tech manufacturing industries have maintained higher growth, while the integration of the manufacturing industry with the internet has taken firm steps, with the internet-enabled new economy showing strong growth, Miao said.
The output the high-tech industry grew 10.8 percent over the previous year, ministry data showed.
The ministry will implement the Made in China 2025 strategy, strengthen the high-tech manufacturing industry as well as cultivate new driving forces, with a view to achieving stable growth for the industrial economy, Miao said
Cutting overcapacity in the steel sector will continue to be a key task for the ministry.
“This year is very crucial for cutting excessive industrial capacity, which is also a long-term task. We are very determined to implement the strategy and won’t slacken our efforts,” said the ministry’s vice-minister, Xu Lejiang.
China plans to cut steel output to 150 million metric tons from 250 million tons by 2020. In 2016, over 65 million tons of iron and steel production capacity were reduced, exceeding its target of 45 million tons.
Xu said the measures showed positive results as the total profits of steel companies more than doubled last year.
